N.J. lawmakers draw attention to impact of budget cuts on health care

Ed Murray/The Star-LedgerA February 2010 file photo of a New Jersey Statehouse hearing.

TRENTON — In separate hearings today, the Senate and Assembly health committees drew attention to the state budget's potential negative impact on parents without health insurance, children diagnosed with developmental delays and low-income patients with AIDS.

The Senate Health, Human Services and Senior Citizens Committee voted to undo a budget cut that would have restricted the enrollment of future patients in the AIDS Drug Distribution Program.

Gov. Chris Christie proposed changing the income level and eliminating nearly 1,000 patients to save $7.9 million. But before the change could take effect Aug. 1, Christie announced the state could find the money through drug manufacturer's rebates and federal aid.

Committee vice-chairman Joseph Vitale (D-Middlesex) said the budget language remains that limited the program to people making three times above the poverty line, or a salary of $32,490, instead of the original threshold of five times the poverty level or $54,150 a year.

Vitale sponsored (S2214) to return to the original income threshold. "We need to reinstate that language,'' Vitale said. "It's the right thing to do ... We have the resources to pay for it.''

The bill passed along party lines with six Democrats voting yes, three Republicans voting no and one Republican abstaining.

The Assembly Health Committee, meeting in the morning, asked advocacy groups to testify about the budget's effect on two popular programs: FamilyCare, the low-cost health insurance program for working poor families, and Early Intervention, which provides children under 3 with home-based speech and other therapies to address developmental delays.

The hearing began with Assemblywoman Joan Quigley (D-Hudson) sourly noting the absence of officials from Department of Health and Senior Services. "Do they think we should not ask these questions? I think we would be irresponsible as a legislature if were to do something and never look behind to see what is the fall out.''

Christie's own estimates say the 48,000 parents would be denied FamilyCare.

Raymond Castro, senior policy analyst for the think-tank, New Jersey Policy Perspective, predicted the fallout would result in fewer children enrolled in the program.

When the state eliminated parent enrollment in 2002 to save money, the result was dramatic: "an estimated total loss of over 41 billion each in federal funds and business activity, 45,000 fewer children being enrolled, and a $750 million increase in charity care over four years,'' he said.